Health Minister Mark Drakeford AM says the new conditions are “fair and affordable” and include a 1% uplift in Agenda for Change pay scales from April 1, 2015.

Each NHS employee will be paid at last the living wage of £7.85 from January 1, and a non-consolidated, non-pensionable lump sum payment of £187 will be given to all Agenda for Change employees in post from December 1.

Employees will also continue to receive incremental progression.

Gaynor Jones, RCN Welsh Board Chair and RCN Council member for Wales, said: “Whilst the RCN in Wales welcomes these marked improvements on the Welsh Government’s original pay offer, it is still less than we had hoped for the hard-working staff of the Welsh NHS.

“Our members are currently facing high levels of stress due to varying factors; insufficient ward staffing numbers, increased workloads and negative reports in the media.

“We did not wish to see unfair wages become another factor in the demoralisation of the nursing workforce, and their health worker counterparts.

“However, from the RCN’s work with the Welsh Government we are pleased to see that there has been consideration of our recommendations, with a proposal that rewards staff this year and ensures future improvements as well.”

Unison said it would prefer terms and conditions for around 80,000 Welsh NHS staff to be agreed at a UK level.